Aecon revenue climbs in second quarter, backlog rises on $1.6B in new work
Investors sent shares of Aecon Group Inc. up roughly 10 per cent last week as the company posted quarterly earnings July 22 that easily topped its performance last year.
The contractor earned revenues of $971.3 million in the second quarter of 2021, up substantially from $779.4 million in the same quarter of 2020. Earnings of 27 cents per share compare to a per share loss of 10 cents in Q2 last year, which coincided with the onset of the COVID-19 pandemic.
“Aecon’s overall outlook for 2021 remains positive as construction continues on a number of projects that ramped up in 2019 and 2020, backed by the level of backlog and new awards achieved during the first half of 2021 and the strong demand environment for Aecon’s services going forward, including recurring revenue programs,” Jean-Louis Servranckx, the company’s president and CEO, said in a release.
The company also bolstered its backlog in Q2, adding $1.6 billion in new upcoming work. As of the end of June, Aecon’s backlog totalled $6.5 billion, up from $5.9 billion at the end of March, though down from $7.2 billion in June 2020. Servranckx said the company saw strong demand for small- and medium-sized projects during the quarter, along with a range of multi-year deals in the nuclear, civil, industrial and transit sectors.